Location: New York, NY | Metro: New York, NY HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,510 |
| 1 Bedroom | $2,650 |
| 2 Bedrooms | $2,880 |
| 3 Bedrooms | $3,640 |
| 4 Bedrooms | $3,990 |
| 5 Bedrooms | $4,628 |
| 6 Bedrooms | $5,183 |
| 7 Bedrooms | $5,598 |
| 8 Bedrooms | $5,878 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,650 | $372,627 | 0.71% | D |
| 2BR | $2,880 | $652,787 | 0.44% | F |
| 3BR | $3,640 | $885,685 | 0.41% | F |
U.S. Census Bureau data (2024)
ZIP code 11214 covers the Gravesend and Bensonhurst neighborhoods in Brooklyn, a densely populated area characterized by vibrant commercial strips along 86th Street and strong family ownership of homes. The neighborhood offers a mix of pre-war brick walk-ups and larger semi-detached houses, maintaining a relatively stable community feel compared to rapidly gentrifying sections of the borough. A major local institution, Maimonides Medical Center, is located nearby and serves as a significant employer and economic anchor for the surrounding area, supporting a steady base of healthcare workers and local service employees who need rental housing.
Financially, the numbers present a challenging spread for voucher holders. The FY2024 HUD SAFMR for a two-bedroom unit is set at $2,610, while the current market rent (Zillow ZORI) sits at $2,833, creating a shortfall of $223 that tenants must cover out of pocket to secure market-rate inventory. The median home value is $759,706, with the median two-bedroom selling for $653,333 and properties lingering a median of 70 days on market. This price point suggests an entry barrier for small investors, though the days-on-market figure indicates a somewhat balanced pace of turnover rather than a rapid sellers' market.
With a renter share of 65.4% and a median household income of $65,895, there is clear structural demand for rental units, but the local income data suggests a cap on what residents can afford. While the neighborhood is served by the D train and offers extensive local amenities, including highly rated public schools like P.S. 215, the rental pool is largely working-class. This demographic alignment supports Section 8 utilization, as families earning near the area median may qualify for rental assistance, yet the gap between the voucher amount and market rent remains the primary friction point for landlords seeking full payment guarantees.
The strongest investor angle here is long-term stability rather than immediate cash-flow maximization. Given the $223 negative gap between the 2BR SAFMR and market rent, pure voucher yields are suppressed unless negotiated downward. However, the high median home value and solid neighborhood infrastructure imply that appreciation is the primary driver. Investors should target properties slightly below the median sale price to improve yields, banking on the area’s persistent demand from families and hospital staff to maintain occupancy and drive asset growth over time.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.